BUSINESS owners are today being urged to take prompt action if they receive communication from The Pensions Regulator.
JF Hornby & Co has noted an increase in calls from clients asking for advice after being contacted by the government agency.
With some callers in panic mode as they approach the deadline to take action, managing director Paul Hornby has issued a plea.
He said: “Regulations linked to pensions have changed in recent years, and there is an onus on businesses to ensure they keep their records up to date.
Plea: Paul Hornby
“Whilst the communication that businesses receive from the regulator is fairly standard, the language used in letters can be overwhelming, especially when pensions are not your area of expertise and you are focusing on the day-to-day running of your business.
“Letters will typically ask employers to ensure they are taking action linked to the re-enrolment and re-declaration of their employees, with deadlines set for these tasks to be completed.
“The best thing to do if you receive one of these letters, and if you do not have the expertise in-house, is to give us a call. We will be able to take matters in hand and ensure the correct information is filed in good time.”
In the UK, employers have several key responsibilities regarding workplace pensions, which are governed by the Pensions Act 2008.
They must automatically enrol eligible employees into a workplace pension scheme if they are aged between 22 and the State Pension age, earn over £10,000 annually, and work in the UK.
Employers are required to contribute to this pension scheme, with minimum contribution rates currently set at 3 per cent of the employee’s qualifying earnings.
Employers must also provide clear communication to employees about their pension rights, including how much will be contributed and the process for opting out if they choose.
Additionally, they must manage and pay these contributions on time, keeping accurate records of the pension scheme’s operations.
Finally, employers are required to re-enrol employees who have opted out every three years, ensuring ongoing compliance with auto-enrolment obligations. Failure to comply can result in fines and penalties.
Paul said: “The worst thing any business can do is file their reminder to deal with down the line. If you do receive communication from the regulator, my advice is to take immediate action. That way, you know you are fulfilling your obligations, looking after the financial wellbeing of your team – and avoiding a hefty fine.”
